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tv   Squawk Alley  CNBC  January 23, 2015 11:00am-12:01pm EST

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good friday morning. 8:00 a.m. at box headquarters in california, 11:00 on wall street and "squawk alley" is live. ♪ welcome to "squawk alley." joining us as always this morning, jon fortt and kayla tausche here at post nine. busy morning as the markets gave up some of the gains from yesterday's draghi led rally but the big story down here at the exchange is box. cloud storage company box going
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public at the nyse. shares soared early on in trading. 2260, about a 61% gain, we talked to box ceo aaron levie in the last hour. and we asked him why he priced the company the way he did. here's his answer. >> our job is to try to get a fair valuation for the company in this process and i think that was the strategy we employed and let the market figure out what the pricing is from there and i think given the growth of the business, you'll see kind of what we're up to. >> all right. aaron, congratulations. >> thank you. >> there's a -- read in the paper like you, google's xhods tized, not making money, don't know when they'll make money, you could make money tomorrow if you wanted to curtail growth, i understand it, and you are far more security oriented than google. in cyber security matters tremendously right now. >> i think the thing largely misunderstood about our business we're not in the consumer space. box helps manage corporate data
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and corporate information for the world's largest companies, general electric, eli lily, toyota, viacom, fox, a bunch of, you know -- we actually work with comcast, nbc is a user in various parts of the organization, we are in health care with stanford hospital, we are in life sciences again with a bunch of the life science leaders. we manage corporate information, secure it and make it accessible on devices, allow you to collaborate around it. that's not the focus of google which is consumer oriented. the important point is we are participating in a once-in-a-lifetime transition from on premise computing to cloud computing. we're he moving from a world where you invest in storage infrastructure, content manage software, search appliances, security technology, in your own data center and what we do at box take that technology, put that in our data center and deliver it as a service. people think when the cost of storage goes down over time as an example that doesn't relate to our business because we give unlimited storage and as the
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price of storage goes down, that directly benefits our infrastructure costs. that's one of the kind of misunderstood dynamics about the business. >> look, drew is a terrific exec and drop box is loved, isn't it easier to start with a paying model commercial and go down to the video you described your own personal data center than to be a free model in the individual and work into the enterprise. >> it's important to think about the size of businesses we're talking about. without speaking about specific competitors, players in the consumer space that have done very well. what we are focused on exclusively at box is working with the largest enterprises and powering how they store, share, manage and coordinate how their information flows to their business. we're going to have competition on the low end of the market. we serve those customers great. they never had to invest in that infrastructure and they can move to the cloud. for customers of all sizes what we're enabling is a set of capabilities that no other product has. >> that was box ceo aaron levie
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at post nine this morning talking about the pricing dynamics for the company's ipo, the business model, and growth down the line. but for more on box's big debut bring in board member josh stein, a partner at draper it fisher. good to see you. >> thank you for having me. >> you were describing to me before we came on the air about how you bought mark cuban out of his investment. i'm sure cubanen is kicking himself today. what did you envision this day looking like back then a decade ago? >> hard to imagine that a decade ago but i couldn't be prouder of the team. we first invested in the company in 2006, with just three people and amazing to see them in a garage in berkeley to where they are today. >> 44,000 corporate clients. we heard levie describing how the company's business model is differentiated from some of the peers like google, like drop box, and he described the fact that lower storage costs would ultimately be better for box's cost but there are questions about when they can actually be profitable.
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when does that day happen? >> you know, i think that's one of the things that's often misunderstood about the business. we actually buy storage. we don't sell stoerrage. i think the conversations we've had with investors have educated people about how this works and customer acquisition cust works and you're seeing that today. >> not so much with google and drop box competing maybe at the lower end, but microsoft, emc, sea gate, oracle recently, getting into this game, and microsoft when it gets in it's going to have a lower storage cost because it has bing, it's got that volume, plus they're selling productivity software that every enter price knows on top of that. when you have somebody with that kind of scale already and that kind of software to sell on top with collaboration share point, et cetera, how does box continue to grow and then grow profitably when microsoft can hold their head under water? >> i think in the technology industry you always have somewhat fuzzy boundaries.
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we actually partner actively with microsoft and huge number of our accounts, so i think the scale that we've already demonstrated in the fortune 1,000 shows that we can penetrate that market. >> talk about aaron a bit. somebody told me this morning that tim cook, who actually tweeted during the interview saying congratulations, follows three ceos on twitter, dix costolo, nadella and aaron. what is it about him that has led the company to this point? >> if you follow aaron or if you follow dick, those two are hilarious. i would imagine some is the entertainment value between the two of them. >> but seriously, in terms of -- >> yeah. >> why him, why is he the one to lead this company now being public, even though he obviously made it a successful start-up? >> one of the things i saw in aaron, even at an early age, he has an incredible ability to synthesize complex things to simple answers. twitter is a perfect example of that. to be so pithy and on message and topical in 140 characters is not easy and that's why aaron is so popular on twitter.
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he's funny but he has really good insight. >> when you look at the structure of an ipo there's some pages that appear to be taken out of maybe twitter's playbook. one, pricing the shares a little bit below fair value to guarantee upside for investors. having shareholders so that you can express some confidence to the market about the investors in this company. but if we learned anything from twitter it's that execution is really key. i'm wondering how you see box as a public company executing over the next year? >> no question. i think execution is the most important. the ipo is a milestone, but it's just a step in the process and how the company that executes over the next couple quarters that's going to be key. i think that's where the management team is focusededs on delivering their numbers. >> what does box need to do over the next 18 months as it faces these challenges from microsoft, from emc specifically, and, of course oracle, going into those corporate offices to say hey, we want you to pay us and we can offer value above those guys and
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all of this value that they're going to offer. do they need new products? do they need collaboration products that can compete even with microsoft? what's it going to take? >> i think it's focus. this has always been the advantage of startups and smaller companies, they can focus. microsoft is a great company, lot of interests they're trying to serve. box is 100% focused on building this cloud platform for sharing enterprise content and what we need to do is continue to invest in innovation and continuing to build out the platform and woring with our partners to do that. >> in a single word what is the biggest priority for box now when they wake up tomorrow? >> execution. >> we'll leave it there. josh stein, congratulations on a successful debut, up some 63% in early trading for box. let's get more on box and the tech sector. simon hobbs on the floor with a special guest. >> yes, joining me here is jay walker, founder of priceline and prolific owner of patents it has to be said. we'll talk about patents in a moment. what do you make of drop? >> i think box, talking about
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the ipo today? >> yes. >> the whole field of cloud computing is only understood within one area and it's about to be understood within a much bigger area, simon. all of health and medicine is coming to the cloud. as we wear all those sensors, those apple watches, all the sensors, guess what, your body streams gigabytes of data. where will we store that for every person? had in the cloud. >> this is more data than individual. i would think video is about as dense as it got. >> video is not that dense when you compare it to the human brain, the genome. at the end of the day, you're generating gigabytes a second of data and that gigabytes of second of data can give you healthy, living well, economic source bigger than video. >> the question is, does drop succeed in a crowded space? you were saying to me as we waited to start this interview that maybe you thought they would be acquired? >> well, i think what's going to happen ultimately, there's going to be a handful of giant players in cloud storage. along the way there will be
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consolidation, innovation, creativity. the question for box is the question for every company, how i do innovate my products faster and smarter and cheaper than my competitor competitors? they can out innovate they will be here. >> the game at the moment was about buying blocks of customers on it to the cloud. how many customers do you have, which is why until recently they were spending more on marketing than actually the profitability. they were wiping out profits. >> that's always true at the beginning of every revolution. at the beginning of the game like facebook, myspace it's about building a customer base. that may be worth more inside of somebody else's organization than a standalone. time will tell. >> patents, the reason you're here. you hold a huge number. you started a patent utility. >> right. >> very importantly idea here is to get those patents that are not being used around the country into the hands of entrepreneurs and used. >> exactly. >> here's what happened. we've created a utility at a public company called patent properties, the u.s. patent utility, simple subscription
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that allows companies to go on and literally find ways to improve their products and services cheaper and faster. 1200 bucks a month. right now the world's greatest repository of innovation is the u.s. patent data base and most of it is frozen on the sidelines nobody is using it. if we want jobs and improve products in our country you have to unlock that stuff. so i'm working exactly on that at patent properties. if i can help unlock that we can grow the economy. >> other great business model wouldn't it be better in inventing somethings else for social media, low cost, high network effect, $1.2 billion customers. >> if it were about making another dollar i would be better off with another tinder app. as we reach a certain stage in life looking for ways to move the whole economy, thinking about your legacy. i have 650 patents but what about the 2 million patents that never made it into the u.s. economy. at the end of the day they will not put on my tombstone i invented another tinder. i need to figure out ways to make things important. >> what happened to the other 50
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patents assume you've sold them. >> we'll come back. >> nice to see you. jay walker joining us. back to you. >> thanks so much, simon hobbs on the floor of the new york stock exchange. we want to get a check on the markets which are in the red this morning. the dow and the s&p are in negative territory. the nasdaq holding on to some gains. tech investors watching the successful debut of box and trading. markets are weighing some volatile moves in oil which are both here and across the atlantic. oil is positive at this hour. that is a turn. oil of course having a volatile morning after the death of king jab dual la of saudi arabia -- abdullah of saudi arabia. shares of ups down big this morning after the company warning fourth-quarter results would fall short of estimates. ceo david abney calling the financial performance, quote, disappointing, which is a surprise because many had expected lower oil prices would have benefited the logistics companies. we will find out more when ups officially reports earnings next week. when we come back, when it comes to tesla, we talk about elon musk.
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buts the company actually has another co-founder and he's talking to us in a first on cnbc entire with us in a moment. how much did new retail chief angela ahrendts make on her first year on the job in apple. mylinda gates and sheryl sandberg speaking to cnbc in davos this morning. our conversation with boat of them is coming up this hour. as "squawk alley" continues. your fidelity green linee t and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira.
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back to ska. goodyear moving lower. they're recalling suv tires after finding small cracks. the move forced gm to stop selling traverse and acadia models and buke enclave until the tires are replaced the shares down about a percent. back to you. >> thanks a lot. the success of tesla's electric cars have inspired one of the company's co-founders to take his ideas bigger literally. joining us is ian wright, ceo of wright speed and tesla co-founder. ian's company taking the tesla model to heavy duty trucks and other commercial vehicles and joins us from san jose. good morning to you. >> good morning. >> this is a fascinating topic. we've seen boon pickens trying to do commercial vehicles with
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nat gas what we're hoping to do with electrifying which is the preferable technology? >> you can combines those. our systems are actually a range extended electric power train for trucks and range extenders clean burning gas turbine like in a power station. >> your point is that electrifying cars is great and there's some energy or environmental savings if you will and nothing compared to what you could do if you did this on scale and commercial sp? >> the properties are amazing. the cars that get replaced by electric cars burn 200 to 600 gallons a year. the garbage trucks we replace the burn in, 14,000 gallons a year. it's enormous. >> the problem is garbage trucks are paid for by municipalities which are more and more underfunded. i'm wondering how you think this technology gets rolled out in a large scale with limited funding from some of the cities and towns that need the technology
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the most? >> only some of the cities and towns own their own garbage trucks. most are owned by companies like waste management and republic services. and those companies are financially in very good shape. >> so ian, how do you go to market in a way that's different from a company like tesla, that's going after the consumer market, the toyota prius had a different route to market? what do you have to do to convince waste management or whom ever else you need to convince that it's worth this kind of ap upgrade? what does that conversation sound like? >> it's basically an economic discussion. there's a capital cost to replace the power train with ours, but then you save so much in fuel and maintenance, that you get your money back in three, four years. after that it's all gravy. fedex is the lead customer and we've had trucks in their fleet now more than a year. >> is that conversation harder with gas prices this low? >> >> it shifts the conversation a bit up into the heavier trucks. we don't do light duty vehicles at all because they don't burn enough fuel. if the price of fuel goes down
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it moves us further up into the higher fuel consumption vehicles. you can always go to europe where they pay $8 a gallon for diesel and it's utterly compelling there. >> let's try not to go there. >> okay. >> you left tesla in '04. very little involvement day to day. what do you make of the argument that the model 3 is just going to be cost prohibitive to sell at $30,000? >> we'll see. never smart to bet against elon. >> do you believe the economics will work yourself or just putting your blind faith in musk? >> it's very, very hard to make the economic work and i'm sure he would say that too. >> are you worried about big three competition coming in mass? >> for tesla or me? not for me. >> on tesla? >> well, they're going to try, but start-up companies, small companies, very focused companies like the guy we're saying about box, have a huge advantage over the big
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incumbents. >> really? i mean, because of why? some might argue your economies of scale at gm would dwarf what you could do over at tesla? >> yeah. if you have to innovate, if you're pushing the envelope, pushing the technology, and start-up companies can do that with much more focus, much more efficiency, smaller teams and a lot less money. >> all right. ian wright, thank you so much for your time. we're going to keep an eye not just on tesla but wright speed as well. breaking news, the united states holding a news conference right now in havana. eamon javers is live with details. hey, eamon. >> hi, carl. what we're looking at right now is live pictures of a news conference by robert ta jakobsson, assistant secretary of state and highest-ranking official to come to cuba in 38 years. wrapped up a series of talks with her cuban counterparts on a range of issues from how the two can handle oil spills offshore to how they'll both handle ebola
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if it makes its way to his part of the world. what we're expecting to see in the press conference some indication of what was achieved during these talks, if they've come up with a time frame for additional talks, time fame frame to reopen as u.s. embassy here. remember the embassy here was closed back in the 1960s and has not reopened since. also whether the cubans will be reopening their embassy in washington. a lot of talking points here ha we're going to be watching for, but both sides going into this have said that they've seen encouraging signs throughout the past couple days here. so positive noises and we'll see if there are any specifics here coming out of the negotiations. >> i'm wondering what sort of pressure there is to lay out a more detailed time frame for how these talks will continue and what sort of developments we can get? >> well frequently when you see these international negotiations the takeaways are prebaked. both sides know what it is they're going to announce when the negotiations are over. it's sort of a ritual that they go through. in this case, though, what the
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state department officials told us in advance was, they had almost no idea what to expect here. they did not know what the cubans would be asking for when they sat down across from them at the negotiating table. they knew what they were going to ask for. they wanted more access for cubans to the u.s. facilities here in cuba. u.s. diplomats here to go around the island freely. they wanted a number of things from their cuban counterparts but no idea what to expect. in this case we don't necessarily know whether there are any takeaways prebaked into this negotiations. >> eman from havana, we will visit you to see how this story develops. thanks. when we come back, while saudi prince joined us earlier to discuss policy in the middle east he had interesting comments on apple's tim cook. we will may them for you when we come back. in my world, wall isn't a street... return on investment isn't the only return i'm looking forward to. for some, every dollar is earned with sweat, sacrifice, courage.
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. if you missed it saudi prince alwaleed joined us in the 9:00 a.m. hour talking oil to
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the u.s. dollar and interesting comments on jamie dimon and tim cook. take a listen. >> jamie dimon is a legend in the industry and i have respect for him and clearly mr. cook also is a very good friend of mine. we're an investor a long time. these are two legends that i have developed with. >> talking whether to buy the euro or dollar, he said i'm a dollar man. bring in simon after what a week it's been. >> that promise yesterday that the european central bank would print and force feed into the economy over a thousand billion euros in the next 18 months, has continued to enliven the stock markets there. good gains. if i show you where we've traded this year, it's clear that european equities are having their moment in the sun, basking in the glory of the central bank. the chart where we've traded his year on european stocks soepd as
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opposed to the s&p 500 here in the united states. for this country we're flat as you can see, but look, european stocks on the ecb move now up 8% for the year overall and it's really noticeable today in particular the exporting stocks, the big names you know are at the top of the leaderboard. bmw, the chemical giant, air bus, unileaver towards the top of the gains so far and that, of course, is as the euro takes an absolute pummeling. let's have a look at where we've traded on the single currency this yearp. and it is for the year, this is just for like two, three weeks, a loss of 7%. a major move that has people concerned, not least the central banks in europe to try to keep the lid on their own currencies. that is a story that clearly is going to play out and the possibility that it actually gets rather more erratic and the moves more dramatic. leave that for now. top gainers, the greek banks, they, of course, have been
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pummeled down because the european central bank has confirmed the greek banks will be part of the eventual bond buying or sovereign buying sorry, greek sovereign debt part of the buying after the middle of march. also, they've okayed some local contingencies where the local central bank can lend to these guys to keep their liquidity as we go, of course, now into the greek election and the prospect that some people could further withdraw their money from the greek banks for fear they might, as a tail risk, return to the drag ma. the scenes from athens as they prepare now for sunday's election. we should get the polls closing there at midday new york time on sunday and shortly after that the exit polls. cut to the chase, guys, looks likes the hard left is going to win this fight. can they gofrvern on their own? do they need a coalition partner? you cut into the discussion of the renegotiation of the debt. that's where we're going to be by the looks of things and the story goes on.
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>> hits keep keep on coming. shares of cloud storage company box soaring in the nyse debut. after a solid day one, where might the company go from here? kara swisher with answers in a moment. plus, facebook sheryl sand berg, melinda gates, sitting down for a joint interview out of davos. what they have to say later this hour. "squawk alley" will be right back.
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welcome back to "squawk alley." let's bring in kara swisher, co-executive editor over at re/code. somebody just wrote in, kara, the vegas line is plus 10, that you would be wearing your sunglasses. not today. good to see you again. another tech darling making its de bought on wall street. shares of box surging, kara, 60% gain. ceo aaron levie joined us last hour to discusses the strategy behind his company's ipo. take a listen to this. >> our job is to try to get a fair valuation for the company in this process and i think that was the strategy we employed and let the market figure out what the pricing is from there. and i think, you know, given the growth of the business, i think you'll see what we're up to. >> another fast-growing tech company not profitable, investing heavily, what's your take? >> i think we lost the signal. >> took a long time to get out,
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it with you delayed several times and so it's -- you know, it's -- of course it questions when drop box will go public, another cloud storage company. and again, though, it's still an incredibly competitive market. google, microsoft, many others, amazon, are in this market and want to do well in it and so it's going to be tough to grab share in this area and it's going to be tough for box even though i'm glad they got out because aaron has been waiting a long time to do it. >> we're going to get back to kara in a second. in case you missed it reid hoffman, linkedin co-founder and plea at paypal once the company coo joined our team in davos and gave a warning on tech valuations. here's what hoffman had to say. >> it's clearly frothy, right. the valuations are very high, ton of capital going into the system. the problem is what does it look like retrospectively, what do the exits look like. you sit out an investment because you think that's too high and then goes higher. so you try to play intelligently. i think there's still good
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investments to be good. we made a couple this year. you have to be more careful enyou have frothy evaluations. >> interesting take from a storied venture capitalist when you hear someone say, i tried to call the high, i missed that, it only went higher, you don't want to sit on the sidelines, but that can't end well. >> that's always the challenge, right? something looks crazy to you, instagram for a billion dollars, how nuts is that until it's not nuts. now we've got even today the situation with box. you know, it's got this pop at the open. does that mean the people who looked at the s1 and saw all the money they were losing were wrong? does this mean it's more in line with a salesforce that has never made a ton of money, obviously, but has continued to move higher because of the gains they were able to make and the big guys are into cloud now, unlike when salesforce made its debut. we'll see. >> box is a great example of this. it raised venture capital money this year at about $2.4 billion. it is in the public market
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surpass that but we have kara swisher back on the phone. i'm just wondering, how conservative you feel the price of $14 a share was, given how high the valuation was six months ago? >> it's a good -- it's a tough park because the enterprise market, the enterprise storage market all the big players are in it. box had a lot of trouble going out. i think initially they tried to go out several times and had to sort of pull back an be conservative in what the valuation was. and it was a smart thing to do that because can you imagine if they overestimated and it dropped considerably. it would have been a death melt for this company. they had to do it just right in terms of going out into the market. >> kara, how is a bet in favor of box, not a bet that satya nadella screws up? hard to argue that nadella and microsoft don't understand the cloud at this point, office 365 is out there, azur is out there, share point, isn't microsoft going to crush them?
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if you just look at this on paper? >> well, isn't microsoft going to crush a lot of people they didn't crush. any said, satya nadella -- >> they messed up. that's why they didn't crush a lot of people. are you betting satya will mess up if you're betting in favor of box right now? >> you're thinking that a lot of these companies have other businesses and maybe they can't focus as much as box or drop box can. you know, these companies have managed to build pretty significant businesses in the middle -- in the middle of other people's businesses. and what happens is big companies, he don't have as much focus, they have, you know, they have lesser people working on these things with the companies, they're not in their core areas, now this happens to be in a core area for microsoft and also for google and amazon, there's all kinds of players here. that's the danger of these companies. and many people thought box would get bought by microsoft, for example, or drop box or something like that. and it didn't. these companies want to stay independent. the question is, can they differentiate themselves and offer products that are better than what the big companies do because eventually those companies will come in, in a
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significant way cut prices and then it becomes much more difficult? >> yeah. we did ask aaron whether they would be a bolt on somewhere. his response, we've been public an hour, give us a break. we'll see where that goes. next up, kara, some big paydays over at apple. filing with the s.e.c. revealing angela ahrendts, former vp of retail or burberry ceo, took home $73.4 million in cash and stock last year. it it tim cook just over $9 million. why is she being paid so much? >> well, the company is doing well and a lot of it is in stock. a lot of these numbers are stock numbers. the shares of apple, they've done rather well, did well with the iphone 6. she got in the company at the right time. it is an enormous amount of money when you look at it and she had just started working on the stores. you haven't seen here. i don't know if you notice hasn't been out in the public very much.
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she's charged with reinvigorating stores so innovative but seemed to have lost their way a little bit. so the question is, maybe they're paying it forward that she's going to be worth it once she increases sales or whatever. but it's a lot of money. all these pay packages to me are astonishing. >> part of what i think is interesting in the pay package, half of the money is simply to make up for the stock and incentives she gave up leaving as ceo of burberry. more than $36 million of that. plus you've got a signing bonus that comes on. all of this pays out over years. not like she got all of this in 2014 and diving into -- >> but it's still a lot of money. >> it's a lot of money. yeah. but if you're going to lure a ceo away from a name brand company to come work for you, you got to pay, right? >> yeah. except that it's very controversial. some executives, i know several who don't want do this. i've talked to ben feldman at pinterest and he was looking at people, people wanted him to pay out their packages at bigger
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companies, and he didn't want to do that because he felt like you're with the company or not. there's all kinds of interesting ideas of whether these people should be paid out of these enormous pay packages to get to new companies. apple is a different story. it's a giant company with all kinds of cash and can spend whatever it wants to pay for someone and obviously she was a ceo, she had a big pay package, i'm mot sure if it's a gigantic risk or jump to go to apple, look at the enormous and fantastic company, so the question is, how much do you pay people to work for you? you know, these are prices that go up and up. like real estate in san francisco. you end up paying it and see if it goes well and stores do better or enrique decastro situation which she did pay out his package there and it didn't work. boy didn't it work. >> obviously,. i tryst and apple, two entirely different companies when jumping from one company to another where much of the comp is in stock. a lot of tim cook's pay when he answers to the board is based in
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benchmark, some have to do with the stock. you mentioned retail sales, you mentioned innovation at the stores, but what do you see as the benchmark that ahrendts needs to deliver on to continue having this compensation? >> it's pretty simple thing. bring these stores into the next era. they were groundbreaking at the time, but maybe they need a little something different. i mean they do -- sometimes when you go into them it doesn't seem -- i go into apple stores all the time and sort of a nonstop party when you're in the stores. and active. how can she increase same-store sales, satisfaction, customers using the stores with the internet, everybody using -- getting things on the internet do they need as many stores. where can they expand. all kinds of challenges in china and asia all over the world. i think there's all kinds of benchmarks you can look. she was hired for, burberry, stylish, reinvigorate the brand a little bit and she's working on the apple watch. she's working on a lot of things
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and bringing fashion and style to apple. something she's been involved with too. so those are all the things she's been hired for. >> yeah. it's going to be interesting to see her start to earn that paycheck as we see changes at apple this year. kara, great weekend to you. talk to you later. >> thanks a lot. >> kara swisher over at re/code. when we come back, sheryl sandberg speaks to cnbc from davos, the leadership at the social media giant facebook and the worst jobs she's ever had. but first, rick santelli, what are you watching today? >> well, we're going to be kind of looking at some italian mathematicians. you got it. a little fib retracement today. what's the venue? where are we aiming the slide rule? at the euro versus the dollar p. big question when manipulation of markets and foreign exchange are the technicals going to work as well as they have in the past? all that after the break.
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let's get to the cme be group and rick santelli. >> hi, carl. everything i do based on technicals is always reaffirming the levels for a close, based on close. not that i don't think intraday extremes are important, they are, but really, back if the day, i think when a lot of this was first being created, used developed, whatever term you want to use, you know, just the storage capacity to try to have all those intraday markets, but
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nonetheless, today it's about the euro. in order to really do this you need to look a 20-year chart of the euro vers sus the greenback. you're looking at that on the screen stare at it. let's go to my white board now. basically the same chart we took all the little moves out just made it the big moves. that's all we are concerned about is the big moves. look at 2001, and i'm rounding a bit, 83 was a low, look at 2008, 160 was the high. all right. let's do retracing, shall we? 160 the high minus the low 83 what does that kwael equal? i know. it's 77. so 77 is the difference between the low and high. what do we do next? take the big retracement. so the actual reracement is 0.612, round it up. we'll round it out to 62% retracement. so if we take 77 and i know this is messy, take 77, times 0.62,
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we end up getting 48. 160 minus 48. any guesses? ever watch ferris bueller? anybody anybody? >> the difference when you take 160 minus 48 happens to be 112. i always love when these things are just so kind of magical. now granted intraday we've gone to 111 and change and the high is closed or the low has closed thus far around 112.5. you really want to pay attention to 112. this is huge and a big move and covers a lot of years and makes it powerful. is it going to work right to the tick? most likely not. considering we had jack lew on today, china manipulates rates, that's bad. europe manipulates the rates, japan manipulates the rates or foreign exchange that's okay, there's a difference. the charts don't know the difference. you need know this to be competitive in the trading game. back to you. >> 112, the level we'll be watching. rick santelli in chicago, thanks
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up next facebook's sheryl sandberg and melinda gates speak to becky quick in davos. won't want to miss what they had to say when "squawk alley" comes back. [coughs] better take something. theraflu severe cold won't treat your runny nose. really? alka-seltzer severe cold and flu relieves your worst flu symptoms plus runny nose. [breath of relief] oh, what a relief it is. mommy! hey! anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last
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from generation to generation. we'll listen. we'll talk. we'll plan. baird.
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as part of our coverage of the world economic forum in davos we're teaming up with facebook to bring you face to face with influential leaders and thinkers and today becky quick sat down for a candid conversation with sheryl sandberg and melinda gates
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covering leadership to the worst jobs they've had. first up a series of rapid fire questions. >> this is just first thing that comes to your mind jump out and run with it. iphone or blackberry or android? >> windows. >> all. >> we run on all of them. i use them all. >> that's what you carry in your purse some. >> i carry a windows phone. >> i switch them off. >> what was your worst job? >> my worst job my parents ha the a side business that got us money to go to college and i had to clean when people left their apartment i had to clean the ovens with easy off and mow the lawns, that was my worst job. >> keeps you in school. >> it did. >> i worked in a mall when i was in high school in this really, really terribly run clothing store, where i essentially was in the back with no light. with no tags. my job was to make the tags match the clothes and there were no inventory systems i could never get it right. it was terrible. >> what's the first thing you do when you wake up in the morning.
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>> meditate. i spend quiet time every morning. it's fundamental to my day. >> good tore you. >> that's my new year's resolution. i'm three weeks in. >> it takes a while. >> i don't feel -- honest to say med tate yet three weeks in but i'm going to try. >> melinda have you ever drank water made from human waste? >> not that i know of. >> bill did. >> and our youngest daughter did. i haven't done it yet. >> okay. >> got to brave yourself. >> bill reminds me that a lot of the water drinking in the united states is recycle water. i have. not from his omni processor. >> are there any old, embarrassing pictures of you on facebook you wish you could get rid of. >> many of pictures of me everywhere but take the good with the bad. >> exactly. >> great conversation. find more at davos.cnbc.com. catch conversations with richard branson, will.iam and apollo
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quay lo. >> kwoths has breaking news on herbalife. >> pull up shares of that company because there's been speculation over the last couple weeks ability the position of one of herbalife's largest share holders. bill is the chairman and ceo of post and he has an 8.2% position in herbalife. i can tell you is according to my sources is that bill has not sold a single share that he has in herbalife. in fact, as the stock has pulled back in recent weeks, he actually bought more, but not enough to cause a filing in the stock. sources also tell me that his confidence in herbalife's business model said to be greater than it ever has been. the headline is two fold. not only has bill stirits not sold his stake, he's used the pullback to buy more. not enough to cause an sec filing but more evidence of his belief and confidence which i'm
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told is said to be greater than ever in that company's business model. you can see herbalife shares, down about 2%, just a short time ago, are now up almost 2 and the volume is picking up. interesting news about one of the biggest shareholders in this company. i'll send it back to you. >> scott, we'll watch hlf. thanks for that. when we come back, gopro meets the nhl. details when we come right back. . enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro.
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the president holding a live q&a on youtube with some of the biggest youtube stars. some serious questions, also whacky ones, starting with what super power would the president most like to have? take a listen. >> i would love to be able to speak any language. >> that's actually amazing. >> anybody i met anywhere in the world i could talk in their language. >> i love that. i would love that too. >> a picture of me holding a receipt from my pharmacy. >> that's a fechg picture. >> thank you. >> it's expensive to manage, but before i had insurance i could not take this medication, about $1100 a month and that is a
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receipt showing it being $5 a month. so obama care has worked for me. >> obama care has worked. >> thanks for that. >> that makes me feel good. hank, your story is the story of so many people. >> my mama said whenever you go to somebody's house you have to give them something, don't come empty handed. >> all right. >> i have green lipsticks, one for your first wife -- >> my first wife? >> i mean -- >> do you know something i don't? >> oh. for the first lady. >> first lady and the first children. sorry. >> i'm teasing. >> okay. >> can you take a selfie with me? >> let's do it. >> are you going to get in here. >> group selfie. >> ready. everybody ready. wait wait wait. wait. hank i can't see you? >> i'm in there. >> that is political coverage in our day and age. actually combined viewership of those accounts 23 million
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people. >> when she asked him what super power you would like, i expected him to say america. >> i don't think so. >> i think he said, speak any language or being able to fly. i think that was the other one. >> i think is universe. >> 45 minute conversation which is longer than most interviews he grants to major news networks. saying something where media is today. >> the jedi mind trick would work well for him. >> every six years. >> the nhl and gopro are teaming up to create more immersive content. they will use gopro to deliver multiple angles in live broadcasts to fans like this. content will be aired across nhl's broadcast digital and social media platforms. interesting to see which leagues adopt this kind of technology next couple years. >> yeah. i mean, it gives you such an interesting angle on the game and hockey is one of those sports for me, not that much fun to watch on tv. if you ever get to see a game
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live as i did, i watched the sharks a few times in san jose, amazing. interesting to see if gopro can help them fix that. >> think about the gopro adapted for the helmet. we've debated it around police helmets but carry it over to any sporting event. hockey would be so interesting it's so full contact. you get in there. i'm not sure i would want to watch it because it would keep me on the edge of my sneets i want to know what gopro can do for golf, high on my list of sports boring on tv. >> i'm going to hear from dominic chu. >> our audience would not like to hear that. they like golf. >> back at the week, netflix earnings, sandisk warning today, skyworks, big tech takeaways? >> i think excitement about growth is probably back. i was taking a look at the stocks up most for the week so far, netflix at the top of the lest, trulia and zillow, pandora, linkedin, amazon,
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alibaba, yelp, king, remember them. >> yep. >> they've had some struggles, but they're up 7% for the week. all those stocks that are kind of risky bets. >> of course the story today, box up 66%. great day for that company. we will see where it trades. >> earnings season mot over. a good weekend to all of you. back to headquarters and wapner and the half. welcome to the halftime show. let's meeting our starting lineup. josh brown, ceo of rid holtz wealth management company, steve weiss partner of short hills capital, pete najarian, co-founder of option munster and joining us tyler vernon, ceo of biltmore capital advisors. our game plan looks like this. ups and downs. what the bomb shell guide down means to your money and that company's future. food fight, after earnings from mcdonald's and starbucks which can deliver the

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